Under fixed exchange rate, which one of the following statements is the most accurate?
A.Devaluation causes a decrease in output, a decrease in official reserves, and a contraction of the money
B.Devaluation causes a rise in output, a rise in official reserves, and an expansion of the money
C.Devaluation causes a rise in output and a rise in official
D.Devaluation causes a rise in output and an expansion of the money
E.Devaluation causes a rise in official reserves and an expansion of the money supply.
Answer:B
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